What is cryptocurrency?
- The invention of bitcoin kicked off the phenomenon of cryptocurrency and many other virtual currencies have emerged on the market since, providing new investment opportunities for businesses and consumers. Today, the combined market capitalization of all digital currencies is estimated to be as high as $370 million.
- Cryptocurrencies like bitcoin will likely continue to have significant implications for society, as they are revolutionizing monetary transactions across the globe. Virtual currency is permissionless and irreversible, so some people even see it as an attack on the traditional control that financial institutions hold over their citizens’.
- Additionally, bitcoin and other cryptocurrencies are unique because they exist in a decentralized system without solely one regulator, instead relying on a peer-to-peer verification. Today, there are many different ways that consumers and businesses can use cryptocurrencies, including buying goods and services, mining, and investing.
- Cryptocurrency continues to become more mainstream, but many people still struggle to understand the complexities of how exactly it works. To understand what the future of virtual currency likely looks like, it’s essential to have a baseline knowledge of how the system operates. Take a look at this infographic >> created by Fundera >> that helps break down the complexities of the cryptocurrency system.